Kentucky businesses took out 1,384 SBA 7(a) loans worth $677M in fiscal years 2024 to 2026, counting only loans that were not cancelled. That ranks 31st of 52 by number of loans and 32nd by dollars. The median loan was $150K at a median starting rate of 9.50%. In FY2026 alone, lenders approved 483 Kentucky loans for $268M before cancellations.
What stands out in Kentucky
Light use of SBA 504
Kentucky had 63 SBA 504 loans, 0.05 for every 7(a) loan, against 0.10 nationally. The 504 program finances owner-occupied real estate and long-life equipment through a certified development company; in Kentucky the most active was Alloy Development Co., Inc. (21 loans).
Lower rates than average
The median starting rate on Kentucky 7(a) loans was 9.50%, against 10.25% nationally, and 26.4% of loans carried a fixed rate (13.6% nationally). SBA caps the spread a lender can charge over the base rate, and smaller loans are allowed higher spreads, so a state's loan-size mix moves its median rate.
A milder FY2026 drop than the country
Kentucky approvals went from 598 in FY2025 to 483 in FY2026 (−19.2%), against −28.1% nationally. Dollar volume went from $292M to $268M (−8.1%).
A franchise-heavy market
Franchise businesses took 15.2% of Kentucky's 7(a) loans, against 11.0% nationally.
SBA 504 loans in Kentucky
The SBA 504 program finances owner-occupied real estate and long-life equipment. A certified development company (CDC) lends up to 40% of the project with an SBA-backed debenture, a bank typically lends about 50%, and the business puts in the rest. The amounts below are the CDC portion.
| Kentucky | United States | |
|---|---|---|
| 504 loans, FY2024-FY2026 (not cancelled) | 63 | 18,076 |
| 504 dollars | $63.2M | $20.82B |
| Median 504 loan | $509K | $742K |
| Jobs supported (reported at approval) | 536 | 190,338 |
| Most active CDCs | 504 loans |
|---|---|
| Alloy Development Co., Inc. | 21 |
| Community Ventures Corporation | 13 |
| Purchase Area Development District | 11 |
What a typical Kentucky SBA loan looks like
| FY2024-FY2026, not cancelled | Kentucky | United States |
|---|---|---|
| Median loan | $150K | $175K |
| Average loan | $489K | $508K |
| Median starting rate | 9.50% | 10.25% |
| Variable-rate loans | 73.6% | 86.4% |
| Median term | 120 months | 120 months |
| Loans of $150K or less | 50.7% | 49.0% |
| Loans of $500K or less | 78.0% | 76.9% |
| Loans of $1M or more | 12.1% | 13.6% |
| Startups (loan opens the business) | 19.3% | 16.1% |
| Startups and businesses 2 years old or less | 33.7% | 32.0% |
| Change of ownership (buying a business) | 13.6% | 10.9% |
| Franchise businesses | 15.2% | 11.0% |
| SBA Express loans | 38.5% | 35.8% |
| Jobs supported (reported at approval) | 13,228 | 1,733,816 |
Kentucky SBA 7(a) loans by fiscal year
SBA fiscal years run October to September, so FY2026 covers October 2025 through September 2026. "Approved" counts every loan SBA guaranteed, the basis of SBA's own published totals; "not cancelled" drops loans that were later cancelled before or after funding. FY2026 loans are recent, so some of them may still be cancelled.
| FY2024 | FY2025 | FY2026 | |
|---|---|---|---|
| Loans approved | 520 | 598 | 483 |
| Dollars approved | $217M | $292M | $268M |
| Loans not cancelled | 469 | 485 | 430 |
| Median loan | $150K | $164K | $176K |
| Median rate | 10.50% | 9.50% | 8.75% |
| Loans of $150K or less | 54.4% | 49.5% | 48.1% |
| SBA Express share | 37.7% | 36.9% | 41.2% |
FY2026 approvals in Kentucky changed by −19.2% from FY2025; nationally the change was −28.1%. See why SBA lending fell in FY2026.
Top SBA 7(a) lenders in Kentucky
| Lender | Loans | Share of state |
|---|---|---|
| 1. U.S. Bank, National Association | 156 | 11.3% |
| 2. Community Trust Bank, Inc. | 147 | 10.6% |
| 3. The Huntington National Bank | 125 | 9.0% |
| 4. Stock Yards Bank & Trust Company | 114 | 8.2% |
| 5. Republic Bank & Trust Company | 89 | 6.4% |
| 6. Newtek Bank, National Association | 71 | 5.1% |
| 7. Northeast Bank | 66 | 4.8% |
| 8. Readycap Lending, LLC | 53 | 3.8% |
| 9. Live Oak Banking Company | 38 | 2.7% |
| 10. Fifth Third Bank | 32 | 2.3% |
Industries that borrow most in Kentucky
| Sector | Loans | Share | Median loan | Median rate |
|---|---|---|---|---|
| Construction | 219 | 15.8% | $141K | 10.00% |
| Restaurants and hotels | 182 | 13.2% | $350K | 9.25% |
| Other services (repair, personal care) | 157 | 11.3% | $150K | 9.50% |
| Retail | 154 | 11.1% | $158K | 9.50% |
| Health care | 137 | 9.9% | $150K | 9.75% |
| Professional services | 113 | 8.2% | $150K | 10.00% |
| Manufacturing | 96 | 6.9% | $250K | 8.50% |
| Administrative and support services | 83 | 6.0% | $150K | 10.00% |
Where in Kentucky the loans go
| County | Loans |
|---|---|
| Jefferson | 383 |
| Fayette | 142 |
| Kenton | 106 |
| Boone | 59 |
| Warren | 48 |
| Daviess | 40 |
| Madison | 35 |
| Pike | 33 |
| City | Loans |
|---|---|
| Louisville | 374 |
| Lexington | 140 |
| Bowling Green | 45 |
| Owensboro | 39 |
| Florence | 30 |
| Covington | 29 |
| Richmond | 28 |
| Paducah | 25 |
Counts only, and only places with at least 10 loans. No individual businesses are listed.
How older loans performed
Of the 722 SBA 7(a) loans approved for Kentucky businesses in FY2020 and FY2021 (not cancelled), 22 had been charged off by September 30, 2026: 3.0% by count and 0.7% of dollars approved. The national figures are 3.7% and 1.0%. Loans from these years have had five to seven years to season, so they say more about losses than recent loans do.
SBA district office for Kentucky
Kentucky loans are overseen by the SBA Kentucky District Office. District offices do not make loans; they support lenders and borrowers and point businesses to local resource partners. Contact details are on SBA's local assistance page.
Comparing SBA and other funding in Kentucky
An SBA loan is often the cheapest long-term money a small business can get, but approval takes weeks and the 2025 and 2026 rule changes narrowed who qualifies. FSE (Funding Solutions Experts) is an independent commercial finance brokerage. We are not an SBA lender and are not affiliated with the U.S. Small Business Administration; one application lets us compare SBA and non-SBA options from our funding partners side by side.
- No fee to your business: we are paid a commission by the funding partner.
- No credit check to apply.
- To be considered, a business generally needs at least 1 year in business and $10,000 or more in monthly revenue.
Read what an SBA loan is and how the programs work or our SBA and term loans guide.
Frequently asked questions
How many SBA loans were made in Kentucky?
Lenders approved 520 SBA 7(a) loans for Kentucky businesses in FY2024, 598 in FY2025 and 483 in FY2026, before cancellations. Net of cancelled loans, the three years total 1,384 loans worth $677M, plus 63 SBA 504 loans worth $63.2M.
Which banks make the most SBA loans in Kentucky?
In FY2024 to FY2026 the most active 7(a) lenders in Kentucky were U.S. Bank, National Association (156 loans, 11.3%), Community Trust Bank, Inc. (147 loans, 10.6%), The Huntington National Bank (125 loans, 9.0%).
What is the typical SBA loan size and rate in Kentucky?
The median 7(a) loan in Kentucky was $150K and the average was $489K. The median starting interest rate was 9.50%, 73.6% of loans had a variable rate, and the median term was 120 months.
Source and method
Figures come from the U.S. Small Business Administration's 7(a) and 504 FOIA loan files (as of September 30, 2026), aggregated by FSE. Loans are assigned to Kentucky by project state. Profile figures cover FY2024-FY2026 loans that were not cancelled. We publish aggregates only: no borrower names or addresses, and no figure based on fewer than 10 loans. Full details are in the methodology, and every state's figures can be downloaded as CSV.
Compare nearby states by volume: Puerto Rico, New Hampshire, Louisiana, Oklahoma, or see all states.